Dig­i­tal Tech­nolo­gies for Bank­ing

Economy of Belarus - - BANKS AND FINANCE -

Dig­i­tal tech­nol­ogy is rapidly chang­ing the way peo­ple use fi­nan­cial ser­vices. Some banks no longer need out­lets in the real world to of­fer ser­vices to clients. Smart­phone apps are in­creas­ingly used for trans­ac­tions in­stead of cash and plas­tic cards. Fin­ger­prints and voiceprints can be used to con­firm the client’s iden­tity.

Whether these global trends have reached Be­larus and how our daily lives may change in the next few years is dis­cussed in an Econ­omy of Be­larus Mag­a­zine in­ter­view with Head of the Cen­tral Of­fice for Pay­ment Sys­tem and Dig­i­tal Tech­nolo­gies of the Na­tional Bank of the Repub­lic of Be­larus (NBRB) Alexan­der SOTNIKOV.

Ac­cord­ing to Alexan­der Sotnikov, the first on­line-only bank may be es­tab­lished in Be­larus in 2018. The con­di­tions are al­ready in place, and there will be enough clients for at least one bank of this kind. Now it is up to bankers to gather up the courage for such a project.

The ex­pert noted that the in­ter­bank client iden­ti­fi­ca­tion sys­tem, which was com­mis­sioned in Be­larus on 1 Oc­to­ber, has fixed all the prob­lems that pre­vented Be­laru­sian banks from of­fer­ing their ser­vices solely in the vir­tual en­vi­ron­ment. As far as po­ten­tial clients are con­cerned, quite many Be­laru­sians opt for re­mote bank­ing ser­vices. “I think the num­ber of such clients is suf­fi­cient for at least one vir­tual bank,” noted Alexan­der Sotnikov. “Now it is up to the banks to do this. They have to be morally and fi­nan­cially ready to im­ple­ment the project.”

By the way, there are quite many on­line-only banks abroad. The ex­am­ples of Tinkoff Bank in Rus­sia and mbank in Poland come to mind. All their ser­vices are avail­able on­line with­out face-to­face in­ter­ac­tion be­tween clients and bank per­son­nel. All the data is stored in the cloud while tech­no­log­i­cal pro­cesses are out­sourced. In Be­larus IT com­pa­nies and their em­ploy­ees could be­come clients of an on­li­neonly bank. Later on all smart­phone users or sev­eral mil­lions of peo­ple could join them.

Us­ing smart­phones for daily trans­ac­tions is an­other promis­ing trend. In Be­larus it can be­come re­al­ity within the next 10-15 years, Alexan­der Sotnikov be­lieves. How­ever, the ques­tion of whether the tran­si­tion will make plas­tic cards and cash ob­so­lete is open to de­bate.

“I be­lieve that ev­ery­thing is in place to make smart­phone pay­ments part of the ba­sic bank­ing ser­vices. How­ever, I doubt that plas­tic cards will dis­ap­pear. We’ve been say­ing for a long time that cash is a thing of the past yet peo­ple con­tinue us­ing it,” the rep­re­sen­ta­tive of the coun­try’s cen­tral bank said.

In­stead of “killing off ” plas­tic cards, cash or some other pay­ment in­stru­ments it is nec­es­sary to en­able com­fort­able con­di­tions for end users, the ex­pert un­der­lined.

“It is sim­pler, more un­der­stand­able and con­ve­nient for me and many other peo­ple to pay with smart­phones in­stead of plas­tic cards,” Alexan­der Sotnikov re­marked. “At least be­cause smart­phone tech­nolo­gies are de­vel­op­ing faster than plas­tic card ser­vices. I may ap­pear cliched but I will never leave my smart­phone at home while I can leave my plas­tic card.”

Yet be­fore smart­phoneen­abled pay­ments are avail­able on a mass scale, it is nec­es­sary to put the rel­e­vant in­fra­struc­ture in place and tune it prop­erly in ad­di­tion to of­fer­ing the nec­es­sary level of se­cu­rity for smart­phoneen­abled trans­ac­tions, the NBRB rep­re­sen­ta­tive stressed.

As far as the se­cu­rity of such trans­ac­tions is con­cerned, the fu­ture be­longs to in­te­grated bio­met­ric iden­ti­fi­ca­tion, the ex­pert is con­vinced. A num­ber of bio­met­ric tech­nolo­gies will be used

In­stead of “killing off” plas­tic cards, cash or some other pay­ment in­stru­ments, it is nec­es­sary to en­able com­fort­able con­di­tions for end users

Newspapers in English

Newspapers from Belarus

© PressReader. All rights reserved.